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thank you so much! having trouble with 13.5! i appreciate the help d. Calculate ` and # 2 . Are the answers equivalent . way

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thank you so much! having trouble with 13.5! i appreciate the help

image text in transcribed
d. Calculate ` and # 2 . Are the answers equivalent . way . Cross- border capital budgeting when international parity does not hold 13.5 Consider the investment in China from Problem 13 . 1 . 2. Suppose that a manager expects the following future exchange rates : EIS , ILS / CNT = ]IS 0. 5801 / CNY* EIS , JLS / CNT = ]IS 0. 6089 / CNY EIS , JLS / CNT = IIS 0. 6392 / CNY Using a yuan discount rate of 11. 745 percent and the shekel discount rate of 15 percent , calculate NPV from the parent and project perspectives Should the manager invest in the project ? Should the manager hedge the project's currency risk exposure ? b. Repeat part ( a ) using the following expected spot rates of exchange : EIS , IL.S / CNY1 = ]IS 0. 5575 / CNY EIS , ILS / CNY1 = ]IS 0. 5625 / CNY* EIS , ILS / CNY1 = ]IS 0. 5676 / CNY Should the manager invest ? Should the manager hedge the proje currency risk exposure ? 3.6 Consider the

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